Gap third-quarter profit, sales beat estimates

(Reuters) - Clothing retailer Gap Inc (GPS.N) on Thursday reported quarterly results that beat estimates, as its turnaround efforts to revive its Gap and Old Navy brand paid off.

Shares of the company rose five percent to $28.87 after market.

The company also raised its full-year adjusted profit forecast to $2.08 to $2.12 per share from its previous estimate of $2.02 to $2.10 per share.

Same-store sales at Old Navy, Gap’s biggest revenue contributor, rose four percent in the third quarter ended Oct. 28, beating analysts’ average estimate of a rise of 2.5 percent, according to Thomson Reuters I/B/E/S.

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The company reported positive same-store sales of its namesake brand for the first time in a few quarters.

Overall same-store sales rose 3 percent in the reported quarter, while analysts were expecting it to rise 1.01 percent.

Excluding items, the company earned 58 cents per share, beating analysts’ average estimate of 54 cents.

The company’s net sales rose about 1 percent to $3.84 billion. Analysts had expected sales of $3.76 billion.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)

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